Cryptomus’ Parent Company Fined $177 Million by Canadian Regulator for Compliance Failures
Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) has imposed a record $176.96 million penalty on Xeltox Enterprises Ltd., the parent company of cryptocurrency platform Cryptomus. The fine marks the largest administrative monetary penalty ever issued by the Canadian financial intelligence unit.
The regulator cited 1,068 unreported suspicious transactions in July 2024 alone, along with 1,518 unreported VIRTUAL currency transactions exceeding $10,000. These violations occurred under Canada's Proceeds of Crime and Terrorist Financing Act, which requires strict compliance from money services businesses.
FINTRAC's action signals intensifying regulatory scrutiny of cryptocurrency operations in Canada. The penalty comes as global watchdogs increase enforcement of anti-money laundering protocols across digital asset platforms.
